1. It will costs the Philippines P2,500,000 to drill a natural gas well. Operating expenses will be 10% of therevenue from the sale of natural gas from this particular well. If found, natural gas from a highly productive well will amount to 260,000 cubic feet per day. The probability of locating such a productive well, however is about 10%. If natural gas sells for P80 per thousand cubic feet, what is the EMVPw of profit to the Philippine governement? The life of the well is 10 years and MARR is 15% per year.

1. It will costs the Philippines P2,500,000 to drill a natural gas well. Operating expenses will be 10% of therevenue from the sale of natural gas from this particular well. If found, natural gas from a highly productive well will amount to 260,000 cubic feet per day. The probability of locating such a productive well, however is about 10%. If natural gas sells for P80 per thousand cubic feet, what is the EMVPw of profit to the Philippine governement? The life of the well is 10 years and MARR is 15% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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